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By
Reuters
Published
Dec 15, 2008
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Target Resources gets $1.5 mln loan from Tiffany unit

By
Reuters
Published
Dec 15, 2008

Dec 15 (Reuters) - Target Resources Plc said on Monday its marketing partner Laurelton Diamonds Inc, a unit of U.S. jeweller Tiffany & Co , had agreed to give another loan of $1.5 million to the alluvial diamond and gold miner.


www.tiffany.com

Target will use the funds to repay capital and interest on an existing loan from Laurelton and the loan is repayable after one year.

Laurelton has also extended its short-term debt facility it made available to Target earlier this year.

The loan is now repayable in equal instalments in August, September and October 2009, the Sierra Leone-focused company said in a statement.

Laurelton has also been granted an option of over 3 million shares in Target at 25 pence per share, exercisable over a three-year period, Target said.

The company said mining operations and volumes are set to proceed apace, including full operations of the new up to 200 tonne-per-hour scrubber and the dredge.

Shares of the company were indicated up 5 percent at 2.75 pence at 1455 GMT. (Reporting by Balachander Surianarayanan in Bangalore; Editing by Gopakumar Warrier)

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